exceptional growth opportunity Jan 2017 1 ASX : BLK Gold producer - - PowerPoint PPT Presentation

Australian gold producer with exceptional growth opportunity

Jan 2017

ASX : BLK

1

• Matilda Gold production commenced in Oct 2016
• Expect production of 60-70koz for FY’17
• Market cap ~ A$197M with strong liquidity ~ A$35/resource oz
• Expansion study well advanced aiming to grow production

beyond 200kozpa

• Resource 6.4Moz @ 3.2g/t, 4 large scaleable gold systems & over

1,000km2 landholding(1)

• Few Australian gold projects capable of +200koz and long mine

life

2

Gold producer with exceptional growth opportunity

1) Refer to ASX release dated 13th December 2016

3

BOARD OF DIRECTORS

Bryan Dixon

Managing Director Mining Develop’t & Corporate

Alan Thom

Director – COO Mining Develop’t & Operation

Milan Jerkovic

Non-Exec Chairman Mining Develop’t & Operation

Greg Miles

Non-Exec Director Geology

Peter Rozenauers

Non-Exec Director Mining Finance & Corporate

CAPITAL STRUCTURE

Market cap. @ A$0.69 A$197M Shares on issue 286M Strong Liquidity - 1 month volume 37M Options @ avg $0.26/share 33M Cash @ 31 Dec 2016 +A$10.7M Debt @ 31 Dec 2016

• A$38M

ASX Gold Index +59%

BLK +178% 12 month performance

Strong liquidity

Corporate Information

SHAREHOLDER ANALYSIS

Hunter Hall 13% Institutional – Australia 13% Institutional - Europe & UK 11% Institutional - Nth America 7% Institutional – Asia 4% Retail 52% Directors and management 5% Top 20 60%

Australia’s best gold belt

4

• In Australia’s largest gold belt

stretching from Norseman through Kalgoorlie to Wiluna

• Regional endowment > 40Moz
• Matilda/Wiluna Operation has over

11Moz endowment including >4.3Moz of past production – Largest endowment in region

• Positioned for new discoveries

and economic development

• f existing resources

• Matilda Progress to Date
• Mar 2014, acquired gold plant and mine and consolidated the Wiluna Goldfield
• Dec 2014, scoping study - Mineral Inventory 5.0Mt @ 2.8g/t for 454,000oz Au
• June 2015, BLK completed $38.5M deal with Orion Mine Finance
• DFS published in Feb 2016 and improved to June 2016
• Mine Plan 9.3Mt @ 2.9g/t for 873,000oz Au (2)
• Reserves 7.0Mt @ 2.5g/t for 560,000oz Au (2)
• Very strong conversion of Mine Plan to Reserves to date
• Resource 6.4Moz @ 3.2g/t(49% indicated) with acquisition and exploration cost of <$6/oz (1)
• June 2016 mining approvals & July 2016 Mining commenced
• Oct 2016 first gold production
• Gold production ~ 16 months after receiving the Orion funding deal
• Ramped up to 4,900oz production in month of Dec 2016.
• Matilda Operating Plan
• Nameplate production this quarter
• Continue to improve and optimise operations and mine plan
• Further reserve upgrades expected with >5Moz resource outside the mine plan
• Finalise expansion plans to fully utilise vast and diversified resource base

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Matilda Progress to Date

1) Refer to ASX release dated 13th December 2016 2) Refer to ASX release dated 17th June 2016

1,277 oz 2,603 oz 4,894 oz 30,685 t 77,918 t 102,600 t

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

Oct Nov Dec

Matilda Gold Production to Dec 2016

Gold Produced (oz) Milling (tns) Head Grade (g/t) Recovery (%)

• Crushing circuit availability slowed ramp up but now operating at above

1.7Mtpa feasibility design

• Mills have run at up to 250tph (2.0Mtpa) currently de-bottlenecking to

achieve steady state beyond 210tph (1.7Mtpa)

• Grade profile ramping up –
• Into higher grade in M10 & M3 pits
• Golden Age development ore averaging 4.9g/t
• Plant recovery 92% - averaged during Nov& Dec’16
• Leach tail 0.11g/t avg during Nov&Dec’16
• FY2017 production guidance
• Produced 4,900oz in month of Dec 17
• Production building by the month
• Gold production – 60-70koz for 8.5 mths
• C1 A$840/oz and ASIC costs A$1,140/oz

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Ramp Up and FY 2017 Guidance

Prospectivity an Embarrassment of Riches

• Resource 63Mt @ 3.2 g/t for 6.4Moz Au (1)

– 49% indicated resource level

• Consolidated Wiluna goldfield with all

deposits < 20km of plant

• Good mix of open pit & high grade UG
• re
• +1,000km2 of tenure & 55km of strike
• 4 large gold systems capable of

sustaining a long mine life

• Averaged gold production of

101,000ozpa over 27 years of operations

7

1) Refer to ASX release dated 13th December 2016

Past Production Resources koz Drilling km Strike km

Matilda >200koz 730 246 7 Quartz reefs >300koz 260 73 15 Lake Way 42koz 360 92 9 Wiluna >4Moz 5,070 1,350 7

Blackham Strategy

• Strengthening and lengthening reserves profile
• Game changing discoveries & opportunistic bolt on acquisitions

Matilda - Stage 1 – 100,000ozpa

• Gold production started from oxides & high grade free milling reefs
• Soft free milling ore will be used build balance sheet
• Aggressive exploration on high grade reefs & base load oxide ore
• Rapidly growing long term mine plan

Matilda & Wiluna - Stage 2 +200,000ozpa

• Additional ore feed from Wiluna sulphides – 5.1Moz @ 3.9g/t
• Additional milling capacity to supply the existing sulphide circuit
• Wiluna open pit resource success underpins expansion plan
• Open pit mining and processing studies in progress
• Expansion study aimed at expanding production to +200kozpa

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Blackham Strategy

• 10kms stacked, repeating gold lodes
• Soft, deeply weathered oxide ore
• Production (1987-1993):
• 2.2 Mt@ 2.6g/t = 181,000oz au
• Mine Plan continues to grow
• 3.7Mt @ 1.8g/t for 213,000oz Au1)
• Gravity & leach recoveries 93%
• Soft rock & ore with significant

free dig

• Designing new M6 pit to the south

following recent drill success

Growing source of large tonnage base load ore

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Matilda Mine – Base Load Ore and Growing

Resources Mt Grade Koz Measured 0.2 2.0 13 Indicated 7.7 1.8 445 Inferred 4.9 1.7 270 Total 12.8 1.8 728

1) Refer to ASX release dated 17th June 2016

9

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Matilda Regional Stacking & Repeating Lodes

• >10kms of prospective shear zone
• Historical drilling identified mineralisation up

to 3km from the mine area

• Ineffective historical RAB requiring RC follow

up along strike and at depth

• Alluvial cover to north & south an

impediment to previous exploration

• Mentelle Trend - prospective Matilda look-a-

like shear?

• Utilise gradient-array IP (GAIP) geophysical

survey to detect Au + sulphides: characteristic of Matilda

• Large RAB program to test basement
• Targeting new Matilda-sized mine ~ 1Moz

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Matilda M10 Mining and Haulage

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• Recent drilling

confirms the open pit potential 11m @ 5.87g/t from 50m

Previous Production 160,000oz @ 9g/t

11m @ 5.87g/t from 50m

Golden Age – High Grade Quartz Reef

12

• UG produced 160,000oz Au @ 9.0g/t
• Middle Resource 290kt @ 9.0g/t for 85,000oz
• UG mining development ore avg 4.9g/t

Golden Age Underground Mining

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Commence UG mining Golden Age Expand resource and reserve base Commence Galaxy open pit Add 2nd UG mining area Aim to stabilize 50,000ozpa from reefs

Mining One Reef with 15km of Reef Prospects

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Stage 2: Wiluna 5.1Moz

• Total resources 41Mt @ 3.9g/t for 5.1Moz (1) -
• OP resources 16Mt @ 2.5g/t for 1.3Moz
• UG resources 24Mt @ 4.7g/t for 3.7Moz
• Operating history gives good understanding of

processing costs & recoveries

• 83% average recoveries over 20 years
• opportunities to improve floatation

recoveries

• Mining plan is the key to unlocking the value
• Substantial mine development - 5 declines
• critical mass of reserves for each decline
• One open pit and two declines operating

gives flexible and sustainable mine plan

• Feasibility and development confirms

sulphides are economic - AISC A$1,140/oz

• Estimating maiden Wiluna open pit reserves

following successful maiden resources

1.5 kms

1) Refer to ASX release dated 13th December 2016 and 23 January 2017

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• Pit optimising on 2.7g/t diluted grade
• Significant mineralisation in purple zones not modelled in

resources – economics likely to improve with further drilling

• wide ore zone ideal for open pit mining

East West Pit - large scale pit

Priority Target

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• Pit optimising on 2.7g/t diluted grade
• Significant mineralisation in purple zones not modelled in resources – economics

likely to improve with further drilling

• Drillling priority targets could reduce strip ratio and result in a single large pit

East West Pit - priority drillout of targets

Priority Targets

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East-West pit cutback opportunity

• East-West pit optimising with a grade of 2.7g/t to a maximum depth of ~230m
• Wide zones of mineralisation ideal for open pit mining
• central zone mineralisation intersected 100m to the north and 200m to the south with

no drilling in between - follow up program commencing in February

No drilling

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600m wide 230m deep

East-West pit cutback opportunity

• East-West pit optimising with a grade of 2.7g/t to a maximum depth of ~230m
• Wide zones of mineralisation ideal for open pit mining
• central zone mineralisation intersected to the north (5m @ 2.7g/t) & south (14m @ 3.7g/t)
• Follow up program commencing in February

No drilling

19

600m wide 230m deep

Happy Jack pit cutback opportunity

• Happy Jack pit optimising with a grade of 3.0g/t to a maximum depth of ~130m
• New northwest striking high grade structure has not been adequately tested

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220m wide 130m deep

Figure - Oblique section looking north through the Gap Lode demonstrating pit optimisation was constrained by lack of data at

• depth. Current drilling has

confirmed the deeper mineralisation extensions.

Pits Constrained by Lack of Data at Depth

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Bulletin Mine Plan – low development capital

Little development required - currently mining Golden Age from the Bulletin Decline

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• 1. Geological success at Wiluna leads to plans for 1.5Mtpa additional mill throughput
• 2. Throughput is the main unknown in determining annual production
• 3. 1.5Mtpa Expansion Study for Feb’2017 will quantify the capex and timing for the additional throughput
• 4. Drilling & mining studies over the 5.1Moz Wiluna open pit & underground
• 5. EBITDA assumes A$1,600/oz revenue and $1,120/oz AISC per ASX release 22 July 2016
• 6. Economies of scale likely to improve costs

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Expanded Production aimed at 3Mtpa @ 3g/t

Matilda Stage 1Wiluna Stage 2 Combined Throughput Mtpa 1.7 ~ 1.5 ~ 3.2 Grade g/t 2.0 ~ 3.8 ~ 2.8 Recovery % 92% 84% 87% Production Koz 101koz ~ 155koz ~ 255koz Resources Koz 1.4Moz @ 1.7g/t 5.1Moz @ 3.9g/t 6.4Moz @ 3.2g/t Capital $M $39 ? Timing Oct-16 Sept 18 to Mar 19 EBITDA $M $48M ~ $71M ~ $119M

Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location shape and continuity of the occurrence and on the available sampling results. The figures in the Table above are rounded to two significant figures to reflect the relative uncertainty of the estimate. See ASX announcements 13 December 2016 and 23 January2017 for further information

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Matilda/Wiluna Gold Resources

Matilda Gold Project Resource Summary

OPEN PIT RESOURCES Mining Centre Measured Indicated Inferred Total 100% Mt g/t Au Koz Au Mt g/t Au Koz Au Mt g/t Au Koz Au Mt g/t Au Koz Au

Matilda Mine OP

0.2 2.1 13 7.6 1.8 435 4.3 1.4 200 12.0 1.7 650

Galaxy

0.4 3.1 42 0.4 2.2 25 0.8 2.7 68

Williamson Mine

3.3 1.6 170 3.8 1.6 190 7.1 1.6 360

Wiluna OP1

8.4 2.7 730 4.1 2.5 330 12.5 2.6 1,060

Regent

0.7 2.7 61 3.1 2.1 210 3.8 2.2 271

Stockpiles

0.4 1.0 13 0.4 1.0 13 OP Total 0.2 2.1 13 21 2.2 1,451 16 1.9 955 37 2.1 2,422 UNDERGROUND RESOURCES Mining Centre Measured Indicated Inferred Total 100% Mt g/t Au Koz Au Mt g/t Au Koz Au Mt g/t Au Koz Au Mt g/t Au Koz Au

Golden Age

0.5 5.3 81 0.9 3.7 110 1.4 4.3 191

Wiluna

9.4 5.2 1570 15.0 4.4 2165 24 4.7 3,735

Matilda Mine UG

0.1 2.5 10 0.6 3.6 70 0.7 3.4 80 UG Total 10 5.2 1,661 17 4.4 2,345 27 4.7 4,006

Grand Total 0.2 2.1 13 31 3.1 3,112 32 3.2 3,300 63 3.2 6,428

Mining Plan the Key to Unlocking Value

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• 19km south along strike from Wiluna
• Large tonnage potential
• Historically Willamson produced

663kt@2.0g/t for 42,000Au

• Free milling 95% DFS recoveries
• Main lode up to 40m wide
• High grade underground gold

3m@40.1g/t 4.3m@17.0g/t 3.5m@35.5g/t 2m @ 95.1g/t

RESOURCES

(1)

Mt

g/t Au

Oz Au Indicated 3.3 1.6 170,000 Inferred 3.8 1.6 190,000 TOTAL 7.0 1.6 360,000

Lake Way – large mineralised suited to bigger plant

1) Refer to ASX release dated 13th December 2016

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Just Scratching the Surface

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Acquisition and exploration cost of <$6/oz Very strong conversion of Scoping mine plans to Feasibility reserves Continuing to extend the mine plan at low costs

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Mine Plan 9.3Mt @ 2.9g/t for 873koz

Brown fields targets Green fields Williamson South, Carrol Prior, Caledonia, Republic, Brothers, Matilda Deeps, LakeWay, Williamson Deeps, Mentelle Trend, Caledonian Trend, Galaxy North, Derwent, Monarch, Regent Deeps Matilda Golden Age Galaxy, Williamson Bulletin, East & West Lodes

Mining studies in progress

Matilda pit extensions, Wiluna UG & pits, Golden Age UG & pit, Regent pit

Resource 63Mt@3.2g/t for 6.4Moz (49% Indicated)

Reserves 7.0Mt @ 2.5g/t for 560koz Limited drilling to date

Growing the Mine Life from Large Gold Systems

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• Very few gold operations in first class

precincts have the scale to be +200,000ozpa

• perations.
• Gold operations of this size generally sit in

billion or multi-billion dollar producers.

Matilda/Wiluna Resources >6Moz

+200koz long life operations are hard to acquire

Company Mines Production FY16 FY16 AISC A$/oz 1Newmont Boddington 794,000 $ 1,065 2Newcrest Cadia 669,000 $ 365 3KCGM Superpit 632,000 $ 1,287 4Anglo gold Ashanti Tropicana 491,000 $ 895 5Newcrest Telfer 462,000 $ 1,289 6Newmont Tanamai 436,000 $ 965 7Goldfields St Ives 372,000 $ 1,287 8Regis Duketon 305,000 $ 1,015 9Goldfields Granny Smith 301,000 $ 1,016 10St Barbara Gwalia 267,000 $ 783 11Evolution Cowal 237,940 $ 907 12Goldfields Agnew 237,000 $ 1,276 13Anglo gold Ashanti Sunrise Dam 216,000 $ 1,110 14Northern Star Jundee 209,000 $ 1,025 Blackham Matilda/Wiluna - Stage 2 255,000 $ 1,120 Blackham Matilda - Stage 1 103,000 $ 1,120

Aussie Gold Developers Peers

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Developer Peers

DCN GOR BLK Market Cap A$M $384 $521 $197 Dev Cap A$M $220 $228 ? Net debt /(cash) A$M

• $26
• $250

$28 Fully Funded EV A$M $578 $499 $225 Gold Resources Mt 45 67 63 g/t 2.3 1.3 3.2 Moz 3.3 3.1 6.4 FFEV/resource oz $/oz $174 $159 $38 Annual production

• zkpa

145 133 230 Existing Plant & Infrastructure No No 1.7Mtpa Development Stage DFS DFS Production Production commences Q1 2018 2018 Oct-16 Payback years 1.8 3.5 1.0 ASIC A$/oz $ 1,039 $ 960 $ 1,120

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Source

BLK has >5.8Moz in resources outside

• f reserves.

Mining studies progressed since last reserves being published in June 2016

Reserves growing fast

Australian Gold Producer Peers

• Strong forecast gold production for 2017FY
• Gold producer with scaleable resources and potential
• f long mine life from limited drilling
• High margins and returns for shareholders
• Expansion study underway aimed at growing

production to ~ 220-260kozpa to better monetise the 6.4Moz resource

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Blackham’s Matilda/Wiluna Vision

This presentation includes certain statements that may be deemed ‘forward-looking statements’. All statements that refer to any future production, resources or reserves, exploration results and events or production that Blackham Resources Ltd (‘Blackham’ or ‘the Company’) expects to occur are forward-looking statements. Although the Company believes that the expectations in those forward-looking statements are based upon reasonable assumptions, such statements are not a guarantee of future performance and actual results or developments may differ materially from the outcomes. This may be due to several factors, including market prices, exploration and exploitation success, and the continued availability of capital and financing, plus general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, and actual results or performance may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in the report that relates to Exploration Targets and Exploration Results at the Matilda Gold Project is based on information compiled or reviewed by Mr Bruce Kendall, who is a full-time employee of the Company. Mr Kendall is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Kendall has given consent to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information contained in the report that relates to Mineral Resources is based on information compiled or reviewed by Mr Marcus Osiejak, who is a full-time employee of the Company. Mr Osiejak, is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Osiejak has given consent to the inclusion in the report of the matters based on this information in the form and context in which it appears. With regard to the Matilda/Wiluna Gold Operation Mineral Resources, the Company is not aware of any new information or data that materially affects the information included in this report and that all material assumptions and parameters underpinning Mineral Resource Estimates as reported in the market announcements dated 13 December 2016 and 23 January 2017 continue to apply and have not materially changed. The information contained in the report that relates to ore reserves at the Matilda Gold Project is based on information compiled or reviewed by Matthew Keenan. Matthew Keenan confirmed that he has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012 JORC Edition). He is a Competent Person as defined by the JORC Code 2012 Edition, having five years’ experience which is relevant to the style of mineralisation and type of deposit described in the Report, and to the activity for which he is accepting responsibility. He is a Member of The Australasian Institute of Mining and Metallurgy, has reviewed the Report to which this consent statement applies and is an employee working for Entech Pty Ltd having been engaged by Blackham Resources Ltd to prepare the documentation for the Matilda Gold Project on which the Report is based, for the period ended 17 June

• 2016. He disclosed to the reporting company the full nature of the relationship between himself and the company, including any issue that could be perceived by

investors as a conflict of interest. He verifies that the Report is based on and fairly and accurately reflects in the form and context in which it appears, the information in his supporting documentation relating to Ore Reserves.

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Disclaimers and Important Information

Mineral Reserve estimates are not precise calculations. The figures in the Table above are rounded to two significant figures to reflect the relative uncertainty of the estimate. See 17th June 2016 ASX announcement.

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Very strong conversion of mining inventory to reserves from scoping through to pre-production

Mine Category Tonnes Mined g/t Reserve Oz

Matilda Mine Proven 195,000 1.9 12,000 Matilda Mine Probable 3,297,000 1.8 192,000 Golden Age Probable 112,000 6.0 21,000 Galaxy Probable 338,000 2.8 30,000 Williamson Probable 1,517,000 1.4 69,000 Bulletin Sulphides Probable 938,000 4.7 142,000 East-West Sulphides Probable 516,000 5.2 87,000 Stockpiles Probable 124,000 1.7 7,000 Total Proven Reserves 195,000 1.9 12,000 Total Probable Reserves 6,842,000 2.5 548,000 Total Reserves 7,037,000 2.5 560,000

Appendix B: Gold Reserves

►Long History of Production +4.3Moz ►Historical Oxide, Quartz, Tailings ~1Moz ►BIOX Fitted to Existing Oxide Plant (Comm May 1993) ►2007: Project broken up - Wiluna mine assets sold to Apex for $29.5M ►Apex spends $71M on exploration expenditure ►Nov 2011 Blackham acquires Matilda Gold Project for $1.4M ►Mar 2014 Blackham acquires Wiluna plant and mine for $2.1M upfront and $2.6M in deferred consideration

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4.3Moz Wiluna Production and More to Come